Assigmnet Cost

Table of Contents 1. 2. 3. 4. 5.

6. 7.

Preface……………………………………………………… 1 Project Specification……………………………………….. 2 Project Drawing …………………………………………… 4 Cost Summary……………………………………………… 5 Cost Break Down …………………………………………. 6 Annexure ADirect Material………………………… Annexure B-

Direct Labor……………………………

Annexure C-

Factory Overhead………………………

General Consideration and Calculations.………………… 7 Acknowledgment …………………………………………… 7

Page 1/10

Preface Report writing is one of the many things with which management students are confronted. We may have the feeling that this is a nuisance; however, for future prospectus these reports are of great importance for us. The assigned term of Cost Accounting is particularly related to construction estimation. Construction business would most likely accumulate costs in a system very similar to the job order costing, that is project costing. The projects are more challenging than jobs that are unique, non-repetitive, have more uncertainties, involve more skills and specialties, and require more coordination over a longer time span. Construction Companies usually has to engage in a complex job that often takes months or years to complete and required the work of many different departments or subcontractors. In our under review report we remain bonded on estimation of the cost of construction, in which we have tried our best possible efforts to cover all relevant cost elements with tested and verified calculation methods and original rates. At the end, we conclude that, to build even a single pillar top of an existing structure, the need of expertise for an architect or contractor is imperative. It takes a professional to judge the capacity of the structure to withstand the additional weight and to determine where and how it needs to be strengthened. In the long run, it is probably most economical to let a contractor build the shell for any exterior addition, and to confine your efforts to whatever interior work you feel equipped to handle.

Page 2/10

In simple words unless you have had considerable previous experience with such work, it is advisable to let a contractor handle the job of building the floor, walls and roof of the addition, once this part of the job has been accomplished, you can take over as much of the light construction and interior finishing as you feel that your skills will permit.

Project Specification 1st Floor Plan Total Covered Area in Square Feet: 4500 (500 Yards) Width: 65’-0” Length 75’-0” Project Duration: 240 Days (6 Months) 4 Bedrooms: 1 25’-3”X34’-1” 1 20’-4”X34’-6” 1 25’-3”X24’-9” 1 15’-7”X18’-5”

(900 (738 (658 (303

Square Square Square Square

Feet) Feet) Feet) Feet)

4 Bathrooms: 1 1 1 1

9’-0”X12’-0” (118 Square Feet) 7’-8”X9’-8” (82 Square Feet) 8’X6’-9” (61 Square Feet) 8’-2”X6’-6” (63 Square Feet)

1 Lounge 1

17’-6”X29’-10” (522 Square Feet)

Page 3/10

1 Study Room 1

16’-2”X18’-5” (321 Square Feet)

1 Storage 1

5’-7”X20’-6” (125 Square Feet)

1 Kitchen 1

13’-0”X23’-6” (372 Square Feet)

1 Dress 1

15’-7”X18’-5” (70 Square Feet)

House features used in this estimate: Construction quality: Exterior: Roof Type: Roof Material: Wall Material: Interior: Average Wall Height: Wall Material: Wall Finish: Floor Material: Ceiling Finish:

Standard Flat 100% Concrete/Iron 100% Masonry (Block/Mortar) 9’ 100% Masonry (1:4 Plaster Mix) 100% Paint (Matt Finish) 10% Bathroom Tile 90% Ceramic Tile 100% Paint

Important Note: Actual construction costs for the 1st floor of this house may differ from the values shown above due to changes in economic conditions, building contractor availability and specific building contractor attributes. The subject cost estimate does not include costs for such items as excavation, land value or detached structures. This

Page 4/10

information is to be used for analytical purposes only and it represents only an estimate.

Cost Summary Product Cost Elements Direct Material Direct Labor Factory Overheads Total Cost

Rs:

825,210.00 Rs: 369,675.00 Rs: 92,600.00 Rs: 1,287,485.00 ===========

Production Cost Elements Prime Cost Conversion Cost Total Cost

Rs: 825,210.00 Rs: 462,275.00 Rs: 1,287,485.00 ===========

Traceable/Untraceable Cost Elements Page 5/10

Direct Cost Indirect Cost Total Cost

Rs: 825,210.00 Rs: 462,275.00 Rs: 1,287,485.00 ===========

Cost Break Down Direct Materials Annexure Roofing (Includes Beams & Pillers) “A” Flooring Rs: Walls (Exterior & Interior) “A” Plumbing Rs: Electric Fitting & Equipments “A” Contingency “A” Sub Total Rs: Direct Labor

Amount Rs:

353,000.00

145,120.00 “A” Rs: 148,360.00 28,005.00 “A” Rs: 37,185.00 Rs:

165,000.00

876,670.00

Page 6/10

Roofing (Includes Beams & Pillers) “B” Flooring Rs: Walls (Exterior & Interior) “B” Plumbing Rs: Electric Fitting & Equipments “B” Contingency “B” Sub Total Rs:

Rs:

63,000.00

15,675.00 “B” Rs: 183,000.00 27,000.00 “B” Rs: 27,000.00 Rs:

86,000.00

342,675.00

Factory Overheads Roofing (Includes Beams & Pillers) Rs: 26,000.00 “C” Flooring Rs: 14,000.00 “C” Walls (Exterior & Interior) Rs: 52,000.00 “C” Plumbing Rs: 300.00 “C” Electric Fitting & Equipments Rs: 300.00 “C” Contingency Rs: 23,000.00“C” Sub Total Rs: 92,600.00 GRAND TOTAL Rs: 1,287,485.00 ===========

Page 7/10

General Consideration and Calculations 1.

Concrete is one of the least expensive of all building materials, till the recent cement price hike. Concrete prove to be very durable when concrete work is properly done. Concrete is a mixture of Portland cement, fine aggregate (Sand), Coarse aggregate (Gravel or crushed stone) and water. These ingredients are carefully proportioned and the proportions of the resulting mix expressed in three number i.e. 1:3:4 means 1 part Portland cement 3 part sand and 4 part gravel/crushed. In over cost estimation we have used 1:1:1 mix, and our per square feet proportions of concrete is as under: Portland Cement Sand Crushed 200 Kg 200 Kg 200 Kg 4 Sack 0.2 Tone 0.2 Tone *1/2 Sack to compensate wastage.

2.

3.

Iron Bar available in Market as per following: Size

1000 KG in Fts

Price per 1000 Kg

¼”

1320

Rs.37,000

3/8”

5860

Rs.37,000

7/16”

4320

Rs.37,000

½”

3300

Rs.37,000

5/8”

2120

Rs.37,000

¾”

1460

Rs.37,000

7/8”

1080

Rs.37,500

1”

820

Rs.38,000

We have determined that 6 Tone Iron Bar of 1” required in our project.1” Crush (Rati & Bajri) fine aggregate (Sand), Coarse aggregate (Gravel or crushed stone) available in Market as per following: Page 8/10

Suzuki Small Truck Large Truck

Rs:

400/= Rs: 1,000/= Rs: 2,000/=

We have taken 10 Large Truck of Crush etc. Acknowledgment We are indebted to many for their valuable guidance and assistance, our primary obligation is to our course facilitator Mr. Mazhar Amjad who guided us at all session he was conducted. After him our obligation goes to Mr. Syed Ali of M/s. Al-Syed Construction, Nazimabad who aided us immensely at all stages with his sound professional knowledge. A special note of gratitude is extended to Mr. Nizafatullah for their usefull contribution regarding electrical, plumbing, and general installations. Ejaz Hussain MEN-2200367

__________________

Ahmed Amanatullah MEN-2200451

__________________

Syed Asad Mehmood MEN-2200475

__________________

Page 9/10

Page 10/10